Kaushiva Inc

question 50

Essay

Kaushiva Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In September, the company completed job I91W that consisted of 12,000 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job I91W shows that the job's total cost was $649,200. During the month, 7,000 completed units from job I91W were sold. No other products were sold during the month.
Required:
Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for September. Show your work!

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Definitions:

Operating Losses

Losses incurred from a company's everyday operational activities not offset by revenue.

Synergistic Benefits

The additional value created by combining two or more companies or assets, which is above what individual entities can generate on their own.

Merger

The combination of two or more companies into a single entity, often to achieve synergies or scale efficiencies.

Divest

The process of selling an asset or business division.